India needs enough jobs |
The nation’s challenge is to create enough jobs to unleash the productivity of India’s talented youth. India’s GDP per capita at $1,650 in 2015 is comparable to China in the coming decade, India’s consumer story will be led by its 130 million urban mass consumers. The sheer size of India’s youth combined with improved education will pave the way for sustained growth in purchasing power and makes India’s consumer story one of the world’s most compelling for the next 20 years, says a Goldman Sachs report. India’s consumer story will be shaped by its 440 million millennials (those reached adulthood around 2000) and 390 million Gen Z (born after 2000). The workforce that falls into the urban middle ($11,000 annual income) stands at 27 million, or 2 per cent of population. It will expand, but investors need to be careful in calibrating the potential addressable market for companies targeting this cohort. Brand investing will be a big theme in everything. But India’s urban mass will trade up into brands that offer the most incremental value and quality, but may not readily jump to aspirational brands, it said.Where India will leapfrog the most is in mobile connectivity and E-commerce. Payment system and supply chain challenges remain but are not insurmountable.
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